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Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year. Results benefited from robust seniors housing operating (SHO) portfolio performance, with same-store net operating income (SSNOI) growth of 21% and a 320-basis-point improvement in average occupancy.
WELL's Resident Fees Drive Revenue Growth
Resident fees and services increased 51.4% year over year to $3.12 billion, accounting for more than the entire increase in total revenues. The increase was primarily driven by continued organic growth and expansion of Welltower's SHO portfolio.
Other revenue streams delivered mixed results. Rental income declined 2.2% to $488.6 million, while interest income increased 23.9% to $83.3 million. Other income fell 60.5% to $22.7 million.
WELL's SHO Portfolio Maintains Strong Momentum
The SHO portfolio generated SSNOI of $604.3 million compared with $499.5 million in the prior-year quarter. Same-store revenues increased 9.1% to $1.91 billion, supported by higher occupancy and pricing gains.
Average same-store occupancy improved to 90.2% from 87% a year earlier. Sequential average occupancy growth of 120 basis points also exceeded the 110-basis-point increase recorded in the year-ago quarter. Same-store revenue per occupied room (RevPOR) increased 5.3% to $6,066, reflecting sustained pricing power.
The broader SHO portfolio benefited from recent acquisitions. Total portfolio revenues increased to $3.17 billion from $2.10 billion, while net operating income (NOI) reached $904.3 million compared with $573.1 million. Total occupancy improved to 88.3% from 86.8%.
WELL Expands Margins Through Operating Efficiencies
SHO same-store operating expenses increased 4.3% year over year to $1.30 billion, significantly below revenue growth. This favorable spread supported a 310-basis-point expansion in the SSNOI margin to 31.7%.
Expense per occupied room (ExpPOR) increased just 0.8%, highlighting effective cost management despite inflationary pressures.
Across the entire portfolio, SSNOI increased 15.8% to $820 million. Seniors Housing Triple-net registered 4.2% growth, while Outpatient Medical and Skilled Nursing recorded increases of 2.4% and 2.8%, respectively.
WELL's Operating Expenses Rise
At the consolidated level, property operating expenses increased 42.4% to $2.25 billion, reflecting the company's expanded operating footprint. General and administrative expenses rose 6.4% to $67.2 million.
Interest expense increased 18.9% to $192.7 million, while depreciation and amortization reached $706.8 million.
WELL Accelerates Investments and Portfolio Recycling
Welltower completed $4.1 billion of pro rata gross investments during the third quarter, including development funding. Excluding development funding, acquisitions and loan funding totaled approximately $3.9 billion across more than 30 transactions.
Seniors housing acquisitions accounted for $2.7 billion across 43 properties. The acquired communities had an average age of approximately four years and in-place occupancy of about 66%, providing opportunities for operational improvement.
The company also completed $484 million of pro rata dispositions and loan repayments, comprising $284 million of property sales and $200 million of loan repayments.
Since the beginning of the year through Oct. 26, WELL completed or had under contract $21 billion of pro rata gross investments, excluding development funding. Of this, $13.3 billion closed during the first nine months, while $7.7 billion closed or remained under contract after quarter-end.
WELL Maintains Low Leverage and Strong Liquidity
Net debt to adjusted EBITDA stood at 3.02x as of Sept. 30, 2026, while available liquidity totaled approximately $9.5 billion. Net debt to consolidated enterprise value was 9.2%.
Cash and cash equivalents were $2.27 billion, while total assets increased to $73.71 billion from $59.50 billion a year earlier.
During the third quarter, WELL sourced more than $4 billion of capital globally. In July 2026, it issued C$1.15 billion of Canadian dollar-denominated senior unsecured notes at a weighted-average coupon of 3.95%, supporting financial flexibility.
WELL Raises 2026 FFO Outlook
Management raised its 2026 normalized FFO guidance to $6.47-$6.53 per share from $6.36-$6.44. The new midpoint of $6.50 represents a 10-cent increase, reflecting stronger SHO performance and investment activity. The Zacks Consensus Estimate for 2026 normalized FFO per share is pegged at $6.43.
Welltower now expects total portfolio SSNOI growth of 15-16.25%. SHO growth is projected at 20.25-21.75%, while Seniors Housing Triple-net growth is expected at 3.5-4.5%. Outpatient Medical and Skilled Nursing are each projected to grow 2-3%.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted funds from operations (AFFO) per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
CCI's quarterly revenues of $995 million declined 7.2% year over year and missed the consensus estimate of $1.01 billion by 1.4%. The decline was due to lower site rental revenues and services revenues.
Prologis, Inc. (PLD - Free Report) reported third-quarter 2026 core FFO of $1.60 per share, up 7.4% from $1.49 a year earlier. The figure surpassed the Zacks Consensus Estimate of $1.58 by 1.3%.
Rental revenues rose 7.4% year over year to $2.21 billion, exceeding the $2.20 billion consensus estimate by 0.2%. PLD's results benefited from higher rental revenues, steady leasing demand and improved occupancy levels. Growth in SSNOI further supported the performance. However, elevated operating expenses weighed on the results to some extent.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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WELL's Q3 FFO Beat Estimates on Strong SHO Portfolio Growth
Key Takeaways
Welltower Inc. (WELL - Free Report) reported third-quarter 2026 normalized funds from operations (FFO) of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 by 1.8%. The metric increased 24.6% year over year.
Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year. Results benefited from robust seniors housing operating (SHO) portfolio performance, with same-store net operating income (SSNOI) growth of 21% and a 320-basis-point improvement in average occupancy.
WELL's Resident Fees Drive Revenue Growth
Resident fees and services increased 51.4% year over year to $3.12 billion, accounting for more than the entire increase in total revenues. The increase was primarily driven by continued organic growth and expansion of Welltower's SHO portfolio.
Other revenue streams delivered mixed results. Rental income declined 2.2% to $488.6 million, while interest income increased 23.9% to $83.3 million. Other income fell 60.5% to $22.7 million.
WELL's SHO Portfolio Maintains Strong Momentum
The SHO portfolio generated SSNOI of $604.3 million compared with $499.5 million in the prior-year quarter. Same-store revenues increased 9.1% to $1.91 billion, supported by higher occupancy and pricing gains.
Average same-store occupancy improved to 90.2% from 87% a year earlier. Sequential average occupancy growth of 120 basis points also exceeded the 110-basis-point increase recorded in the year-ago quarter. Same-store revenue per occupied room (RevPOR) increased 5.3% to $6,066, reflecting sustained pricing power.
The broader SHO portfolio benefited from recent acquisitions. Total portfolio revenues increased to $3.17 billion from $2.10 billion, while net operating income (NOI) reached $904.3 million compared with $573.1 million. Total occupancy improved to 88.3% from 86.8%.
WELL Expands Margins Through Operating Efficiencies
SHO same-store operating expenses increased 4.3% year over year to $1.30 billion, significantly below revenue growth. This favorable spread supported a 310-basis-point expansion in the SSNOI margin to 31.7%.
Expense per occupied room (ExpPOR) increased just 0.8%, highlighting effective cost management despite inflationary pressures.
Across the entire portfolio, SSNOI increased 15.8% to $820 million. Seniors Housing Triple-net registered 4.2% growth, while Outpatient Medical and Skilled Nursing recorded increases of 2.4% and 2.8%, respectively.
WELL's Operating Expenses Rise
At the consolidated level, property operating expenses increased 42.4% to $2.25 billion, reflecting the company's expanded operating footprint. General and administrative expenses rose 6.4% to $67.2 million.
Interest expense increased 18.9% to $192.7 million, while depreciation and amortization reached $706.8 million.
WELL Accelerates Investments and Portfolio Recycling
Welltower completed $4.1 billion of pro rata gross investments during the third quarter, including development funding. Excluding development funding, acquisitions and loan funding totaled approximately $3.9 billion across more than 30 transactions.
Seniors housing acquisitions accounted for $2.7 billion across 43 properties. The acquired communities had an average age of approximately four years and in-place occupancy of about 66%, providing opportunities for operational improvement.
The company also completed $484 million of pro rata dispositions and loan repayments, comprising $284 million of property sales and $200 million of loan repayments.
Since the beginning of the year through Oct. 26, WELL completed or had under contract $21 billion of pro rata gross investments, excluding development funding. Of this, $13.3 billion closed during the first nine months, while $7.7 billion closed or remained under contract after quarter-end.
WELL Maintains Low Leverage and Strong Liquidity
Net debt to adjusted EBITDA stood at 3.02x as of Sept. 30, 2026, while available liquidity totaled approximately $9.5 billion. Net debt to consolidated enterprise value was 9.2%.
Cash and cash equivalents were $2.27 billion, while total assets increased to $73.71 billion from $59.50 billion a year earlier.
During the third quarter, WELL sourced more than $4 billion of capital globally. In July 2026, it issued C$1.15 billion of Canadian dollar-denominated senior unsecured notes at a weighted-average coupon of 3.95%, supporting financial flexibility.
WELL Raises 2026 FFO Outlook
Management raised its 2026 normalized FFO guidance to $6.47-$6.53 per share from $6.36-$6.44. The new midpoint of $6.50 represents a 10-cent increase, reflecting stronger SHO performance and investment activity. The Zacks Consensus Estimate for 2026 normalized FFO per share is pegged at $6.43.
Welltower now expects total portfolio SSNOI growth of 15-16.25%. SHO growth is projected at 20.25-21.75%, while Seniors Housing Triple-net growth is expected at 3.5-4.5%. Outpatient Medical and Skilled Nursing are each projected to grow 2-3%.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Welltower Inc. Price, Consensus and EPS Surprise
Welltower Inc. price-consensus-eps-surprise-chart | Welltower Inc. Quote
Performance of Other REITs
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted funds from operations (AFFO) per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
CCI's quarterly revenues of $995 million declined 7.2% year over year and missed the consensus estimate of $1.01 billion by 1.4%. The decline was due to lower site rental revenues and services revenues.
Prologis, Inc. (PLD - Free Report) reported third-quarter 2026 core FFO of $1.60 per share, up 7.4% from $1.49 a year earlier. The figure surpassed the Zacks Consensus Estimate of $1.58 by 1.3%.
Rental revenues rose 7.4% year over year to $2.21 billion, exceeding the $2.20 billion consensus estimate by 0.2%. PLD's results benefited from higher rental revenues, steady leasing demand and improved occupancy levels. Growth in SSNOI further supported the performance. However, elevated operating expenses weighed on the results to some extent.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.